REPORT TO THE CITY COUNCIL
February 18, 2021
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: THOMAS MORGAN, Housing Manager
Housing and Community Development Division
KAREN JENKS, Administrative Manager
Housing and Community Development Division
BY: EDWARD CHINEVERE, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
Actions pertaining to supplemental funding provided by the U.S. Department of Housing and Community Development Office of Community Planning and Development (HUD CPD) to prevent, prepare for, and respond to the Coronavirus:
1. ***RESOLUTION - Adopting Substantial Amendment 2019-06 to the 2019-2020 Annual Action Plan and COVID-19 Amendments to the Citizen Participation Plan to submit a request to HUD to program $7,980,086 of Community Development Block Grant-Coronavirus (CDBG-CV) funds to prevent, prepare for, and respond to the Coronavirus (COVID-19); approving allocations to activities in accordance therewith; and authorizing the City Manager or designee to sign all implementing documents as approved to form by the City Attorney (Subject to Mayor’s veto)
2. Approve first revision of ESG-CV Activity Allocations to allocate $5,960,899 of Emergency Solutions Grant-Coronavirus, 2nd tranche (ESG-CV2) to activities to prevent, prepare for, or respond to the Coronavirus among homeless populations and persons at risk of homelessness; and authorizing the City Manager or designee to sign all implementing documents as approved to form by the City Attorney
3. ***RESOLUTION - Adopting the 59th amendment to the Annual Appropriation Resolution No. 2020-159 appropriating $3,796,000 for COVID-19-related CDBG activities (Requires 5 affirmative votes) (Subject to Mayor’s veto)
Body
RECOMMENDATION
Staff recommends the City Council adopt Substantial Amendment 2019-06 to the 2019-2020 Annual Action Plan; approve allocations for activities to prevent, prepare for, and respond to the Coronavirus to benefit homeless persons and low- and moderate-income persons; and authorize the City Manager or designee to sign all necessary implementing documents as approved to form by the City Attorney.
EXECUTIVE SUMMARY
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), HUD CPD has allocated additional entitlement funds to the City of Fresno to prevent, prepare for, and respond to the coronavirus (COVID-19) and allow for alternate citizen participation processes in order to expedite the implementation of programs and investments to address the COVID-19 pandemic. The City Council previously approved allocations for a subset of these funds and the City entered into agreements for those activities. The City is now proposing to take the necessary steps to program, and allocate all remaining HUD CPD Coronavirus relief funds. These funds will be used to provide homeless and homelessness prevention activities including support for four new emergency shelter sites recently acquired by the City of Fresno and the Fresno Housing Authority, which together will add approximately 387 beds to the City of Fresno homeless response including deposit assistance for those exiting homelessness; and will provide services for those at risk of homelessness as a result of the COVID-19 pandemic through tenant and landlord counseling services and access to medical services in underserved neighborhoods.
BACKGROUND
The City of Fresno (City) is a federal entitlement community that receives an annual allocation of grant funds from the U.S. Department of Housing and Urban Development (HUD) for the following entitlement programs:
• Community Development Block Grant (CDBG)
• HOME Investment Partnerships (HOME)
• Emergency Solutions Grant (ESG)
• Housing Opportunities for Persons with AIDS (HOPWA)
As an entitlement community, the City is required to prepare an Annual Action Plan detailing the uses of entitlement funds to meet its affordable housing and community development goals as outlined in its Consolidated Plan, and to adopt and follow a Citizen Participation Plan in determining the priorities and projects to be included in the Consolidated Plan and Annual Action Plans.
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed by the U.S. Congress and signed into law by the President on March 27, 2020, HUD has allocated additional entitlement funds to the City to prevent, prepare for, and respond to the coronavirus (COVID-19). In order to expedite the implementation of programs and investments to address the COVID-19 pandemic, HUD has issued guidance to allow for remote citizen participation and shortened public comment periods for entitlement funds used to prevent, prepare for, and respond to COVID-19.
The City is proposing to make a Substantial Amendment to its Program Year 2019 Annual Action Plan to program additional funds allocated by HUD as part of the CARES Act to prevent, prepare for, and respond to COVID-19; and to amend its adopted Citizen Participation Plan (CPP) to add provisions for citizen participation requirements associated with entitlement funds being programmed or re-programmed to address the COVID-19 pandemic, as well as to clarify requirements when physical locations such as municipal buildings are inaccessible due to federal, state, or local orders. These CPP amendments were previously adopted into the City’s 2015-2019 CPP and are now being adopted into the City’s 2020-2024 CPP.
The Substantial Amendment will program $7,980,086 of Community Development Block Grant-Coronavirus (CDBG-CV) funds from two tranches identified as CDBG-CV1 and CDBG-CV3. The City did not receive any CDBG-CV2 funds because HUD only awarded those funds to States. Additionally, the City is recommending allocations for $5,960,899 of Emergency Solutions Grant-Coronavirus (ESG-CV2) funds previously programmed through Substantial Amendment 2019-05 adopted on October 28, 2020. Taken together, this funding of $13.94 million will support and leverage the City’s efforts to assist homeless and those at risk of homelessness over a period of five years by providing emergency shelter and housing stabilizations services.
Activities recommended for funding are:
• $3,298,000 of ESG-CV2 funds to provide emergency shelter operations and supportive services at three Project Homekey sites acquired by the Fresno Housing Authority from January 2021 through June of 2022.
• $3,377,500 of CDBG-CV funds to provide emergency shelter operations and supportive services at the Fresno Housing Authority Project Homekey sites from July 2022 through December 2024
• $1,388,800 of ESG-CV2 funds to provide emergency shelter operations and supportive services at the emergency shelter formerly known as the Travel Inn from January 2021 through June 2022
• $1,664,000 of CDBG-CV funds to provide emergency shelter operations and supportive services at the emergency shelter formerly known as the Travel Inn from July 2022 through December 2023
• $500,000 of ESG-CV2 funds to provide deposit assistance for homeless and homelessness prevention
• $1,342,600 of CDBG-CV funds to support new medical clinics in underserved neighborhoods through the provision of initial operating costs or facility improvements.
• $480,000 of CDBG-CV funds for tenant/landlord counseling services to assist tenants and landlords for individuals impacted by the Coronavirus
• $1,115,986 of CDBG-CV funds for grant administration to comply with all applicable regulations while expediting the implementation of services and investments to prevent, prepare for, and respond to the coronavirus (COVID-19)
• $774,099 of ESG-CV2 funds for emergency shelter, rapid rehousing, or homeless prevention services to prevent, prepare for, and respond to the Coronavirus
The Fresno Housing Authority’s Project Homekey sites are currently identified as the below locations. A fourth site, Motel 99, at 1240 & 1280 N. Crystal Ave. is also receiving Project Homekey funds from the State of California, however will not utilize City of Fresno HUD CPD funds for operations.
• Parkside Inn, at 1415 W. Olive Ave.
• Days Inn at 1101 N Parkway Drive
• Welcome Inn, at 777 N Parkway Drive
Should one of the emergency shelter sites be converted to permanent housing before utilizing all of its allocated emergency shelter operations funds, the City may reallocate those funds to an alternate emergency shelter site.
COVID-19 Amendments to the City’s adopted Citizen Participation Plan include:
• A 5-day public comment period for COVID-19 Substantial Amendments.
• Required distribution of notices and public review documents through digital channels in the event that public buildings are inaccessible to the Public.
• Required methods of distribution for remote participation instructions in advance of Public Hearings in the event that public buildings are inaccessible to the Public.
The City will also implement the following waivers made available by HUD for activities undertaken to prevent, prepare for, and respond to the Coronavirus:
• A waiver of the 15% cap on Public Services activities for CDBG-CV funds
The Appropriations Resolution for this item includes only the CDBG-CV3 funds ($3,796,000) as the other sources were announced prior to adoption of and included in the Annual Appropriations Resolution for FY21. Staff will return to City Council for approval of individual agreements for activities provided by subrecipients.
Citizen Participation
• January 26, 2021: Public Notice distributed via Fresno Bee
• January 26, 2021: English and Spanish language public notice distributed on social media, through the Housing and Community Development Division (HCD) email distribution list, and City Clerk website
• Week of January 26, 2021: Public notice read in Hmong on KBIF radio
• January 28, 2021: Draft documents published to HCD website and City Clerk website for 5-day public comment period
• February 3, 2021: End of 5-day public comment period
• Following the adoption of the recommended activities, the ESG-CV2 activities will be posted to the City’s website in accordance with HUD alternate requirements for ESG-CV funds
ENVIRONMENTAL FINDINGS
This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378 and is exempt for NEPA purposes pursuant to 24 CFR 58.34.
LOCAL PREFERENCE
Local preference is not applicable because of the use of federal funding.
FISCAL IMPACT
Adoption of Substantial Amendment 2019-06 and the ESG-CV2 funding allocation recommendation will allow the City to expend $13.94 million of new entitlement funding to prevent, prepare for, and respond to COVID-19.
Attachments: Resolution - Substantial Amendment 2019-06
Resolution - 59th Amendment to the AAR No. 2020-159 appropriating $3,796,000
Summary
Public Draft of Substantial Amendment No. 2019-06 and COVID-19 Amendments to the Citizen Participation Plan
Emergency Solutions Grant-Coronavirus (ESG-CV) Activities Recommendation
Additional Information - Public Comments and City Responses